New York State Department of Financial Services (NYDFS) issued a new BitLicense to Ripple Labs Inc, the company will be able to sell and hold XRP, Ripple’s native cryptocurrency token.
One year after the New York State authorities began asking companies to apply for a BitLicense -to maintain a proper legal framework-, Ripple Labs has been granted permission to sell, hold, and transact with XRP. Ripple offers a Global Settlement Network. According to Ripple’s official website:
Ripple’s distributed financial technology allows for banks around the world to directly transact with each other without the need for a central counterparty or correspondent
Ripple offer banks the ability to tap into a global payment network, speeding up transactions and lowering transaction fees and maintenance costs. Ripple Co-Founder and CEO Chris Larsen, said:
Earning the BitLicense is incredible validation of the institutional use of digital assets by DFS, one of the most influential state regulators. I’m proud of the work of our regulatory relations team, led by Ryan Zagone. With the BitLicense in hand, we look forward to working with our New York bank customers seeking to use XRP for liquidity and cost savings.
Issued by the New York State Department of Financial Services (NYDFS), BitLicense is a regulation introduced in June of 2015, its goal is to maintain a certain level of oversight to companies that have any virtual currency activities. The regulations are limited to activities involving New York or a New York resident. Those that reside, are located, have a place of business, or are conducting business in the State of New York count as New York Residents under these regulations.
Source: Ripple
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